The smartphone market is increasingly becoming a two-horse race between Google and Apple, with little room left for competitors outside of Android and iOS.

The latest data from Strategy Analytics reveals that 70.1 percent of smartphones shipped in the fourth quarter of 2012 were Android devices, while 22 percent were iPhones. With the two platforms accounting for 92.1 percent of shipments, that left just 7.9 percent for all other operating systems, such as Windows Phone or BlackBerry.

"Combined together, Apple and Android accounted for a record 92 percent share of all smartphones shipped globally in the fourth quarter of 2012," said Scott Bicheno, senior analyst at Strategy Analytics. "The worldwide smartphone industry has effectively become a duopoly as consumer demand has polarized around mass-market Android models and premium Apple designs."

The research firm's data found that although Apple saw its sales grow 29 percent year over year, its market share was down slightly, from 24 percent a year ago to 22 percent in the fourth quarter of 2012.

Android, meanwhile, nearly doubled its shipments from 80.6 million units at the end of 2011 to 152.1 million in the holiday quarter of 2012. Android's share of the global market increased from an estimated 51 percent of shipments to 70 percent at the end of 2012.

In all, nearly a half-billion Android phones are said to have been shipped in calendar 2012. In comparison, Apple shipped 135.8 million iPhones in the same span.

"Android is clearly the undisputed volume leader of the smartphone industry at the present time," said Neil Mawston, executive director at Strategy Analytics. "Androids challenge for 2013 will be to defend its leadership, not only against Apple, but also against an emerging wave of hungry challengers that includes Microsoft, Blackberry, Firefox and Tizen."

If Apple release an iPhone 4 remade in plastic, available in multiple colors for $200 - $250, it would prove to be a strong contender in the developing markets. At its release, the iPhone 4 cost $188 to make (http://news.cnet.com/8301-31021_3-20009027-260.html). After 3 years, I would expect that cost to have fallen dramatically.

Seems to me a hughe potential for Apple to grow beyond the wildest expectations.

Actually, Wall Streets wildest expectations have proven to be pretty wild indeed. They expect Apple to drop the price of everything to free to capture 110% of the marketshare while increasing profits 500% every two weeks, all while paying dividends and, well, simply handing cash over to Wall Street institutional traders just because.

The gulf between iOS and Android seems to keep widening. Both Apple & Google will continue to grow but I wonder how long it will be before Android has something like 90% Market share and Apple has 6% with everyone else making up the rest.

Sure Apple will likely control the profit margins, but it's going very much like the Mac vs PC era.

The gulf between iOS and Android seems to keep widening. Both Apple & Google will continue to grow but I wonder how long it will be before Android has something like 90% Market share and Apple has 6% with everyone else making up the rest.

Sure Apple will likely control the profit margins, but it's going very much like the Mac vs PC era.

The gulf between iOS and Android seems to keep widening. Both Apple & Google will continue to grow but I wonder how long it will be before Android has something like 90% Market share and Apple has 6% with everyone else making up the rest.

Sure Apple will likely control the profit margins, but it's going very much like the Mac vs PC era.

No, it's not. Apple controls the profits. Apple's products are the solid winners when it comes to virtually every usage metric. Apple controls the show when it comes to developer profits.

Keep in mind that Strategy Analytics is one of those companies that calls almost anything with a keypad a 'smartphone'. They 70/20 split is not even close to representative of Apple's position in smart phones. By most accounts, it's a lot more even when you don't count the phones that are nothing more than glorified feature phones.

Not to mention, of course, the entire premise is flawed. Are these analysts totally incapable of understanding differentiation and segmentation? Apple isn't competing in the cheap-POS market and probably never will. Just as BMW or Mercedes don't compete in the cheap POS car market yet they're doing well. How is it that they can't comprehend such a simple concept?

If Apple release an iPhone 4 remade in plastic, available in multiple colors for $200 - $250, it would prove to be a strong contender in the developing markets. At its release, the iPhone 4 cost $188 to make (http://news.cnet.com/8301-31021_3-20009027-260.html). After 3 years, I would expect that cost to have fallen dramatically.

No, no and no. Didn't you hear Cook say on the investor call that Apple won't chase revenue for the sake of it? Android might have 70% market share but only one company has real profits - Samsung. I don't think Apple wants to give up profits for market share.